turdburglar (39.76)

Market will be lower a week from now

2

You don't hear anyone saying "short the Fed statement". I'm not even sure the Fed will do anything. Operation Twist will not help anything but Treasuries.

Also, Bernanke now has cover and a perfect setup for a lesson for politicians called "don't f*** with the Fed." He comes out and says "no easing" and that's it. Market tanks. Everyone blames the Republicans. Needless to say next Fed meeting Bernanke won't be getting a letter unless it's an apology.

Isn't Bernanke a Republican? Why did the Republicans send the letter in the first place?...there was already a good chance that the Fed wasn't going to announce anything significant...Bernanke has been stating for months that Congress needs to follow up with stimulus and that monetary policy can't solve all of our problems. In any case, how much credibility does the Fed actually have? Let's say they announce nothing whatsoever, the market tanks, everyone blames the Republicans, etc... Then what? The Republicans point out that unemployment increased during QE2 and GDP growth weakened substatially as well. They put it back on the Fed to prove that QE2 wasn't the cause of the weakening and that QE3 wouldn't have made things worse. Bernanke, if he can pull some magical policy out of his back pocket that creates 5 million jobs and returns us to solid growth, could end up looking like a hero when all is said and done. Odds are better that he comes out of this looking like the biggest idiot in the history of the world as he clings to policies that have been proven to fail and helps plunge us into what will be written about in history books as a depression.